Chapter 1- Intro to Personal Finance

Question 1

The granting of a loan and the creation of debt; any form of deferred payment

Answer 1

Credit

Question 2

An obligation of repayment owed by one party to a second party; in most cases this includes repayment of the original loan amount plus interest

Answer 2

Debt

Question 3

A system by which goods and services are produced and distributed

Answer 3

Economy

Question 4

The knowledge and skillset necessary to be an informed consumer and manage finances effectively

Answer 4

Financial Literacy

Question 5

A fee paid by a borrower to the lender for the use of borrowed money. Typically a percentage of the loan amount

Answer 5

Interest

Question 6

A debt evidenced by a “note” which specifies the principal amount, interest rate, and date of repayment

Answer 6

Loan

Question 7

All of the decisions and activities of an individual or family regarding their money.

Answer 7

Personal Finance

Question 8

A person or organization that uses a product or service

Answer 8

Consumer